Internet Scamming

INTERNET SCAMMING (by bytypatoz)

Introduction

Internet scamming is a form of fraud on the internet, which involves running of scams by some anonymous individual through the use of internet. Internet scamming is done mainly to steal money from the public or some personal property or information. This has been a great challenge to our technology, and has increased the risks of e-commerce thereby reducing the confidence of the consumers to transact using internet. Examples of activities associated with internet scams are investment schemes, identity fraud, and job or business opportunities. It has been one of the major obstacles in communication and information management.

Many people ignore the warnings about internet scams, and interesting enough they fall on the trap. Scammers target all kind of individuals all over the world ranging from the young to the elderly. This problem can be prevented through education. When someone is educated, it's hard to fall in such traps of con schemers and con artists. There are several articles that discuss internet scamming. Three of them have been summarized below.

Impact of internet scamming on e-commerce

Introduction

E-commerce is defined by World Trade Organization as the process by which products are produced, advertised and distributed through telecom networks. It involves the buying and selling of goods or services over the internet (Laudon & Traver, 2009). Instruments or channels used to do e-commerce include internet, phone, fax among others. Through e-commerce, e-tailing, market research, business transaction and Electronic Data Transfer has been made possible. E-tailing involves a 24 hours retail shopping which provision of information and prospectus and ability to interact. Electronic Data transfer involves exchange of data between businesses.

E-commerce requires high security for it to be effective. This is because some people perceive internet to be a channel of realizing big gains and valuables from foreigners and they may end up compromising E-commerce (Burrel, 2011). Attorney Bill Rathford told Ecommerce times that "Blatant fraud, like the fake-news diet promotions and other online scams that have sprouted in recent years, only serves to undermine consumer confidence and eventually marketers and business as a whole," (Baker, 2011). The access to resources should be controlled and business transactions should be authenticated. The web pages should be used by users who are registered. This will help to avoid internet frauds such as scams.

Ways through which internet scamming affects e-commerce

Online auction scams.

This is a type of internet scamming in which goods or services are offered to the customers through auction houses in the internet, and after a customer has bid the goods or services, nothing is delivered or the customer receive counterfeit goods. In most cases, online auctions between individuals or small businesses deal with the customer directly. The site therefore has no any responsibility regarding the actions between buyers and sellers, since it is the seller who has the commodities and the buyer has the money to purchase.

This has a great negative impact to e-commerce because it reduces the credibility of online transactions. It therefore discourages customers or buyers from buying good on the internet. This may affects many genuine sellers and businesses in a manner that it may reduce the market of their products. The victims also suffers big losses which and they can't be compensated by any one.

General merchandise retail scams.

In this case, the scammers create fake websites, which almost look exactly as the legitimate sites of famous companies or institutions. Retail goods are then offered to customers and once a customer has purchased, no delivery is made or counterfeited goods are delivered.

This also affects e-commerce by reducing the credibility of online transactions and causing firms to lose customers. Customers who happen to be victim also suffer loss of their money.

Online Investments scheme frauds

This is a form of internet fraud, which targets the security market. It is also called market manipulation schemes. The scammers can use the email or social sites to convey false information to the public in order to cause an increase in the stock prices of a particular company, and after the increase of the stock price, the scammer sells his/her shares. This is referred to as 'pump and dump, scheme. The scammer can also spread incorrect information for the purpose of decreasing the stock prices, in order for them to buy the shares. This can make the involved party to make large profits within a short period of time. It also involves individual selling of securities, investment funds, or annuity sales by unlicensed people.

This form of internet scam affects the financial market performance of companies involved, and investors may be discouraged to buy shares from those companies due to the fear of making losses in their investments. The false information spread by scammers may reduce the image of the company involved, and the company mnay lose public confidence, and customers may end up not buying products of the company.

Phishing

According to Smith mikelle,This is a form of internet fraud, that involves obtaining personal information of other people through the use of created emails or websites that resembles the legitimate organisations such as banks or government institutions (2011). The scammers may obtain personal information of the victims through lottery scams, sweepstakes scams etc. Sweepstakes scum requires the 'winners' are required to immidieatly a submit their personal information or to provide a payment inorder to be given the price wonned. The party involved then uses the information or identity of another person obtained to perform illegal transactions. According to Rusch,The scammers usually aim at obtaining information such as passwords , user names, credit numbers, and so forth (2001).

Effects of this to e-commerce can be immense. Smith points out that Scammers may end up using other people identity to carry out online transactions. It would be hard to know whether you are dealing with the right person or whether it's a fraudulent individual (2011). This is one of the major chalenge affecting e-commerce.

Business oportunity/work at home schemes scams.

This form of scam promise the victims great opportunities of making a lot of money without straining.